AIRLINK 64.51 Increased By ▲ 2.31 (3.71%)
BOP 6.19 Decreased By ▼ -0.04 (-0.64%)
CNERGY 4.88 Decreased By ▼ -0.11 (-2.2%)
DFML 14.93 Increased By ▲ 0.03 (0.2%)
DGKC 66.90 Decreased By ▼ -2.09 (-3.03%)
FCCL 17.40 Decreased By ▼ -0.33 (-1.86%)
FFBL 24.71 Increased By ▲ 0.11 (0.45%)
FFL 9.19 Decreased By ▼ -0.02 (-0.22%)
GGL 10.26 Increased By ▲ 0.36 (3.64%)
HBL 108.74 Increased By ▲ 0.24 (0.22%)
HUBC 117.16 Increased By ▲ 0.66 (0.57%)
HUMNL 6.62 Decreased By ▼ -0.08 (-1.19%)
KEL 4.42 Decreased By ▼ -0.04 (-0.9%)
KOSM 4.67 Decreased By ▼ -0.05 (-1.06%)
MLCF 35.85 Decreased By ▼ -1.05 (-2.85%)
OGDC 123.32 Increased By ▲ 0.02 (0.02%)
PAEL 23.16 Increased By ▲ 0.72 (3.21%)
PIAA 23.89 Increased By ▲ 1.67 (7.52%)
PIBTL 5.77 Increased By ▲ 0.02 (0.35%)
PPL 110.90 No Change ▼ 0.00 (0%)
PRL 27.60 Increased By ▲ 0.03 (0.11%)
PTC 15.25 Increased By ▲ 1.06 (7.47%)
SEARL 53.15 Decreased By ▼ -0.10 (-0.19%)
SNGP 63.49 Decreased By ▼ -0.26 (-0.41%)
SSGC 10.86 Decreased By ▼ -0.14 (-1.27%)
TELE 9.23 Increased By ▲ 0.28 (3.13%)
TPLP 10.98 Increased By ▲ 0.25 (2.33%)
TRG 71.75 Increased By ▲ 1.45 (2.06%)
UNITY 24.83 Increased By ▲ 0.63 (2.6%)
WTL 1.39 Increased By ▲ 0.03 (2.21%)
BR100 6,758 Increased By 59.6 (0.89%)
BR30 22,682 Increased By 63.5 (0.28%)
KSE100 65,544 Increased By 653.2 (1.01%)
KSE30 21,738 Increased By 201.8 (0.94%)
Markets

Romania 2019 budget deficit breaches EU limit

It may now run the risk of disciplinary action from Brussels. At a press conference, Citu indicated that the p
Published January 28, 2020
  • It may now run the risk of disciplinary action from Brussels.
  • At a press conference, Citu indicated that the previous left-wing government's spending plans had been to blame for the deficit increase.

BUCHAREST: Romania's budget deficit ballooned to 4.6 percent of gross domestic product in 2019, Finance Minister Florin Citu said on Tuesday, breaking the three percent ceiling laid down by the European Union.

Romania's liberal government, installed in November of last year, said it had encountered "unexpected" expenses.

It may now run the risk of disciplinary action from Brussels.

At a press conference, Citu indicated that the previous left-wing government's spending plans had been to blame for the deficit increase.

"Last year funds allocated to investment ended up being directed towards salaries and welfare payments," Citu said.

The previous leftist government had projected a deficit of 2.76 percent for 2019, which experts described as unrealistic even at the time.

The new liberal government was initially expecting the figure to reach 4.4 percent.

Spending on public sector salaries was up 19 percent compared with 2018 whereas public revenue only increased 10.7 percent.

Citu said the government should be able to bring the deficit down to 3.6 percent over 2020.

"It's not just a promise of mine that I want to keep, but if we don't respect this (3.6 percent) target we will lose what I see as the most important thing right now, and that is investors' trust," Citu said in a TV interview on Monday evening.

He predicted "a hard fight" ahead to keep to this threshold given upcoming local and national elections this year.

The International Monetary Fund (IMF) and credit rating agencies have urged the government to abandon a 40 percent hike in pensions voted through by the previous government and due to take effect in September.

According to the independent Fiscal Council watchdog, the pension hike could mean the deficit going beyond 4.6 percent in 2020.

Comments

Comments are closed.